Inox Wind was listed on the NSE and BSE on April 9, 2015. In the last five years, the company has given a massive return of more than 2600% to its investors. Will Inox Wind continue to provide such great returns in the future as well? Let’s explore Inox Wind’s growth potential and Inox Wind share price target from 2025 to 2050 in this article.
About Inox Wind
Inox Wind is an Indian company that manufactures wind turbines and offers wind energy solutions. It was founded in 2009 and is part of the Inox Group. The company manufactures wind turbine generators and provides wind farm development, maintenance, and operational support services.
Inox Wind Business Model
- Wind Turbine Manufacturing: Inox Wind earns money by making and selling wind turbines. These turbines generate electricity from wind energy and are sold to businesses, power companies, and government projects.
- Turnkey Wind Projects: Inox Wind provides complete wind power solutions, including setting up wind farms. It handles everything from site selection to turbine installation, making it easy for customers to start wind energy projects.
- Operations and Maintenance Services: After setting up wind farms, Inox Wind earns by maintaining and servicing the turbines. It offers long-term maintenance contracts to ensure smooth operations and efficiency.
- Wind Farm Infrastructure Development: Inox Wind helps in building the necessary infrastructure for wind farms, like roads, power transmission lines, and grid connections. This service generates additional revenue.
- Equipment and Spare Parts Sales: The company sells spare parts and equipment needed for wind turbines. This helps customers repair and upgrade their wind farms, providing a steady income for Inox Wind.
- Renewable Energy Consultancy: Inox Wind offers consultancy services to businesses and investors looking to enter the wind energy sector. It provides technical guidance and project management, adding another source of income.
Inox Wind Fundamental Analysis
| Stock Name | Inox Wind Ltd. |
|---|---|
| NSE Symbol | INOX WIND |
| Market Cap | ₹ 21134 Cr. |
| 52W High | ₹ 262 |
| 52W Low | ₹ 107 |
| Stock P/E | 68.4 |
| Book Value | ₹ 20.5 |
| Dividend Yield | 4.26 % |
| ROCE | 64.3 % |
| ROE | 1.81 |
| Face Value | ₹ 10.0 |
| Shareholders | Mar 2023 | Mar 2024 | Dec 2024 |
|---|---|---|---|
| Promoters | 72.01% | 52.87% | 48.27% |
| FIIs | 1.89% | 9.47% | 15.26% |
| DIIs | 0.00% | 10.16% | 9.80% |
| Public | 26.10% | 27.49% | 26.68% |
| No. of Shareholders | 53,212 | 1,17,484 | 3,87,105 |
Key Factors Driving Inox Wind Future Growth
- Government Support: INOX Wind benefits from government policies promoting renewable energy, such as subsidies, tax breaks, and renewable energy targets.
- Rising Demand for Clean Energy: As more industries and businesses transition to renewable energy, INOX Wind expects to receive more orders for wind turbines and services.
- Strong Order Book: INOX Wind receives a consistent flow of orders from various power producers, ensuring future revenue growth.
- Expansion of Wind Energy Projects: INOX Wind is expanding its wind farms throughout India, increasing its market presence and revenue potential.
- Advancements in Technology: INOX Wind is working to improve the efficiency and cost-effectiveness of its wind turbines.
- Falling Cost of Wind Energy: The cost of producing wind power is decreasing, making INOX Wind’s projects attractive to investors.
- Focus on Service Revenue: In addition to selling turbines, INOX Wind generates revenue through long-term maintenance and operational services.
- Increasing Investments in the Renewable Sector: More private and institutional investors are funding renewable projects, opening up new opportunities for INOX Wind.
- Partnerships and Collaborations: INOX Wind is partnering with power companies and developers to grow its business and install more wind energy projects.
- India’s Net-Zero Targets: The government wants to reduce carbon dioxide. which will lead to more wind energy projects in which INOX Wind can play an important role.
Pros of Inox Wind
- Strong Sales Growth: Inox Wind has achieved a strong sales growth of 35% CAGR over the last three years.
- Strong Profit Growth: Inox Wind has achieved a strong profit growth of 24% CAGR over the last three years.
- Increase in DIIs Holding: Domestic Institutional Investors (DIIs) have increased their holding to 9.80% in December 2024 from 9.09% in September 2024, which indicates growing confidence in the “Company Name” future potential by the DIIs.
Cons of Inox Wind
- Low Return on Equity (ROE): Inox Wind’s 5-year average ROE is -23.4%, which shows that Inox Wind is not using shareholder funds efficiently to generate profits.
- Low Return on Capital Employed (ROCE): Inox Wind’s 5-year average ROCE is -5.45%, indicating inefficient use of its capital to generate profits.
- Overvaluation Concern: Inox Wind is trading at a PE ratio of 68.4 and a (P/B) ratio of 7.90, which shows that its stock is significantly overvalued. This high valuation may limit future upside potential and pose a risk of correction if market sentiment changes.
- High Financial Risk: Inox Wind has a high debt-to-equity ratio of 1.33, indicating a strong dependency on debt. This increases financial risk, raises interest costs, and may have an impact on profitability.
- Decrease in FIIs Holding: Foreign Institutional Investors (FIIs) have reduced their holding to 15.26% in December 2024 from 15.82% in September 2024, indicating a decline in FII’s confidence in the company’s future growth prospects.
| Years | Target Price |
|---|---|
| Inox Wind Share Price Target 2025 | ₹200 to ₹250 |
| Inox Wind Share Price Target 2026 | ₹240 to ₹330 |
| Inox Wind Share Price Target 2027 | ₹290 to ₹430 |
| Inox Wind Share Price Target 2028 | ₹350 to ₹550 |
| Inox Wind Share Price Target 2029 | ₹420 to ₹720 |
| Inox Wind Share Price Target 2030 | ₹500 to ₹930 |
| Inox Wind Share Price Target 2035 | ₹1000 to ₹2790 |
| Inox Wind Share Price Target 2040 | ₹1990 to ₹8400 |
| Inox Wind Share Price Target 2050 | ₹8000 to ₹50000 |
Conclusion
Inox Wind has experienced impressive growth in recent years, providing significant returns to investors. With strong government support, rising demand for renewable energy, and ongoing advancements in wind technology, Inox Wind has a promising future. However, concerns about high debt, weak long-term profit growth, and overvaluation may cause risks. The company’s future success is dependent on its ability to maintain sales growth, improve profitability, and capitalize on India’s push for clean energy. For the latest updates, you can visit Inox Wind official website.
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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